The Bangko Sentral ng Pilipinas (BSP) reported that foreign direct investment (FDI) net inflows totaled USD 529 million in February 2025, marking a 61.9 percent decline from the USD 1.4 billion recorded in the same month last year. The year-on-year decrease was largely driven by base effects, reflecting a high comparison level in February 2024.
The contraction was most pronounced in non-residents’ net investments in equity capital (excluding reinvestment of earnings), which fell by 85.9 percent to USD 108 million from USD 764 million a year earlier. Additionally, net investments in debt instruments decreased by 35.4 percent to USD 348 million, while reinvestment of earnings dipped by 13.1 percent to USD 73 million.
Despite the overall decline, equity capital placements in February 2025 continued to flow from key economies such as Japan, the United States, Ireland, and Malaysia, signaling sustained investor interest. These investments were channeled primarily into the manufacturing, financial and insurance, real estate, and information and communication sectors.
For the first two months of 2025, cumulative FDI net inflows stood at USD 1.3 billion, representing a 45.2 percent decrease compared to the USD 2.3 billion posted in the same period in 2024.
The BSP remains committed to supporting policies that foster a favorable investment climate and sustain the country’s long-term growth prospects amid evolving global economic conditions.
